KDDI looking to buy Chuba’s fibre-optic business for USD372mn

17 Jan 2008

Japanese telecoms group KDDI Corp is holding talks to acquire the fibre-optic operations of Chuba Electric Power for JPY40 billion (USD371.8 million), Reuters reports citing a source within the company. KDDI is looking to purchase around four-fifths of Chuba Telecommunications in a move which would increase its share of Japanese fibre-optic lines from 6.3% to 8%. The telco is looking to challenge former state-owned monopoly Nippon Telegraph and Telephone Corp (NTT) which commands 70% of the country’s roughly ten million fibre users. A successful move for Chuba could pave the way for KDDI to take over the telecoms operations of other power utilities which currently control 10% of the market, the source said.

Japan, KDDI (au)